Primary Agricultural Cooperative Societies (PACS), which are expected to support farmers by providing loans and other essential services, have come under scrutiny over allegations of financial irregularities. Questions are being raised over the functioning of the system meant to prevent such irregularities in societies operating under the leadership of elected presidents.
According to the report, massive irregularities allegedly took place in 25 cooperative societies in the erstwhile West Godavari district. In particular, investigating officials reportedly found financial irregularities amounting to Rs 23.25 crore at the T. Narasapuram society. However, criticism has been raised over the manner in which the matter is being handled in the name of an inquiry instead of taking stringent action against those allegedly responsible.
PACS Become Hubs of Irregularities? Alleged Misappropriation in 25 Societies
According to the details mentioned in the report, there are 256 cooperative societies in the erstwhile West Godavari district, which are expected to provide loans and other services to farmers. However, allegations of large-scale financial irregularities have surfaced in several societies.
The report stated that inspections and inquiries conducted by officials of the district cooperative department into the functioning of various societies brought several financial irregularities to light.
The societies mentioned in connection with the alleged irregularities include T. Narasapuram, Rangapuram, Chintalapudi, Jangareddygudem, Lakkavaram, Kamavarapukota, Saripalli, Vandalapuru, Raghava, Siddhantam, Teeparru, Annavaram, Ruppadu, Badampudi, Kalluru, Gopalapuram, Chagallu and Yelamanchili, among others.
The report stated that inquiries were conducted into issues including the sanctioning of loans against allegedly fake gold, irregularities in loan transactions and violations of rules in other financial dealings.
It also mentioned that inquiries under Section 51 were conducted in several cases.
Is Responsibility Being Avoided While Only Lower-Level Employees Are Being Targeted?
There are reportedly 256 cooperative societies in the Gopavaram area of the erstwhile West Godavari region, with PACS expected to provide loans and financial support to farmers. Allegations of large-scale irregularities in some societies have raised questions over the functioning of the cooperative system.
According to the report, several allegations have been made against officials of the cooperative department regarding the handling of societies and recovery of dues. Critics allege that even after inquiries into violations of rules, the authorities have failed to establish complete accountability and take comprehensive action against all those responsible.
The issue has therefore raised questions about whether responsibility is being confined to society-level employees while the role of supervisory officials is being adequately examined.
Rs 23.25 Crore Irregularities Allegedly Found in T. Narasapuram
The T. Narasapuram PACS has emerged as one of the most significant cases mentioned in the report. According to the report, investigating officials found alleged financial irregularities amounting to Rs 23.25 crore at the society.
Similarly, the report mentioned alleged irregularities of approximately Rs 2.06 crore at Rangapuram Society, Rs 2 crore at Kamavarapukota, Rs 2 crore at Jangareddygudem, Rs 1 crore at Vatluru Society and Rs 1 crore at Vijayaraayi Society.
Apart from these societies, inquiries into alleged financial irregularities at several other cooperative societies are also reportedly continuing.
Allegations of ‘Suspension and Settlement’
The manner in which the inquiries are allegedly being conducted has also come under criticism. The report contains allegations that money is being demanded from those facing inquiries into complaints of financial irregularities at cooperative societies.
According to the report, when preliminary inquiries allegedly establish irregularities of around Rs 1 crore, notices are issued to the concerned office and the persons allegedly responsible are subsequently called for discussions.
The report further alleged that negotiations are then held with the concerned individuals and that the amount of alleged irregularities is reduced before a recovery amount is demanded.
It also referred to allegations that in a case involving Rs 30 lakh, negotiations were conducted and the amount was allegedly reduced by Rs 70 lakh, followed by demands ranging from Rs 7 lakh to Rs 10 lakh.
There are also allegations that an additional Rs 2 lakh to Rs 3 lakh is allegedly collected to avoid further action against those responsible.
The report stated that senior inspectors and Assistant Divisional Cooperative Officers working under the district cooperative department and divisional offices are generally appointed as inquiry officers.
It further alleged that there is significant demand for being appointed as an inquiry officer and that inquiries in the erstwhile West Godavari region are allegedly being conducted through three officials considered favourable to senior authorities.
These allegations, however, require independent verification and official clarification.
Irregularities Identified, But Where Is the Action?
Once financial irregularities are established, questions are being raised over why stronger measures such as filing criminal cases against those responsible and attaching their properties have allegedly not been taken in several cases.
Although some action has reportedly been taken against employees of certain societies, the report stated that apart from the suspension of three or four secretaries, there has been limited visible action against those allegedly responsible.
If financial irregularities are established, the amount involved would ordinarily need to be recovered and appropriate legal action considered against those responsible, depending on the findings of the inquiry and applicable law.
The issue has therefore triggered demands for stronger action rather than limiting the process to departmental inquiries.
Allegation of Rs 10 Lakh for Every Rs 1 Crore
Another serious allegation mentioned in the report concerns the alleged collection of money from inquiry proceedings involving cooperative societies. The report referred to allegations of “Rs 10 lakh for every Rs 1 crore” in connection with such inquiries.
According to the allegations cited in the report, after initially determining that irregularities worth around Rs 1 crore had occurred and issuing notices to the concerned office, negotiations were allegedly held with those responsible. The amount of alleged irregularities was then reportedly reduced, followed by demands for a settlement amount.
The concerned authorities need to clarify these allegations.
At the same time, if financial irregularities are established in any society, the amount involved would need to be recovered and appropriate legal action taken against those responsible in accordance with the law.
Farmers and members of the cooperative societies are seeking final action in such cases rather than allowing the matter to remain limited to inquiries.
When Will the Money Be Recovered? When Will Those Responsible Face Action?
Despite inquiries reportedly establishing financial irregularities involving crores of rupees in some societies, allegations have surfaced that the process is sometimes being concluded by holding the society secretary responsible, without examining the wider chain of accountability.
There are also allegations that intermediaries are being used during the inquiry process to reduce the amount of alleged irregularities and prevent criminal cases against those responsible. However, these allegations have not been independently established and require verification.
At the same time, immediate measures are considered necessary to protect the interests of farmers, depositors and members of societies where financial irregularities are found.
Who Is Actually Responsible for the Alleged Irregularities in PACS?
The allegations of financial irregularities involving crores of rupees in PACS, which were established to provide financial support to farmers, have raised serious questions about the functioning and supervision of the cooperative system.
Allegations involving 25 societies in the erstwhile West Godavari district, the Rs 23.25-crore case in T. Narasapuram, alleged irregularities running into crores at Rangapuram and Jangareddygudem, and allegations of money being demanded in the name of inquiries have all raised questions about the effectiveness of the monitoring mechanism.
However, several key questions remain: Are the allegations true? What is the actual financial loss? Who was responsible and to what extent? Were money demands made in the name of inquiries? If so, who was involved?
A comprehensive investigation, examination of financial records, identification of those responsible, appropriate legal action and full recovery of the misappropriated funds, wherever established, would be necessary to bring clarity to the matter.
Cooperative societies established to support farmers need stronger monitoring and transparent functioning so that they do not become centres of allegations of financial irregularities.
